Global operations networks in motion: Managing configurations and capabilities

Abstract

In the past, the ‘Made in the World’ label, although capturing what may lie ahead, seemed awkward and futuristic. Today, it has become a reality. An ample array of global products are built up of numerous components and modules manufactured by global networks of differentiated partners rather than within the boundaries of one national entity. The purpose of this paper is to contribute to bridging the empirical gap in the area of global operations networks and provide insights into how they change over time. The paper is based on the cases of three Danish companies and their global operations networks. It finds a number of common patterns highlighting organizational effects and managerial challenges faced by the companies regarding rapid changes in their networks configurations and capabilities. The paper details the variables determining these changes and suggests how the on-going interplay between the focal organization, its network partners, and their varying contextual conditions can be dealt with.